Prepare a flexible budget for overheads on the basis of the following data. Ascertain the overhead rates at 50%, 60% and 70% capacity. Variable overheads: Indirect material Indirect labour Semi-variable overheads: Electricity (40% fixed 60% variable) Repairs (80% fixed 20% variable) Fixed overheads: Depreciation Insurance Salaries Total overheads Estimated direct labour hours At 60% capacity (sh. '000') 3,000 9,000 8,250 2,250 7,500 46,500 93,000 15000 1500
Prepare a flexible budget for overheads on the basis of the following data. Ascertain the overhead rates at 50%, 60% and 70% capacity. Variable overheads: Indirect material Indirect labour Semi-variable overheads: Electricity (40% fixed 60% variable) Repairs (80% fixed 20% variable) Fixed overheads: Depreciation Insurance Salaries Total overheads Estimated direct labour hours At 60% capacity (sh. '000') 3,000 9,000 8,250 2,250 7,500 46,500 93,000 15000 1500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:QUESTION:
Prepare a flexible budget for overheads on the basis of the following data. Ascertain the overhead rates at 50%, 60% and
70% capacity.
Variable overheads:
Indirect material
Indirect labour
Semi-variable overheads:
Electricity (40% fixed 60% variable)
Repairs (80% fixed 20% variable)
Fixed overheads:
Depreciation
Insurance
Salaries
Total overheads
Estimated direct labour hours
At 60% capacity (sh. '000')
3,000
9,000
8,250
2,250
7,500
46,500
93,000
15000
1500
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